Agency guidelines leave prospective homeowners on the sidelines

November 9, 2018

“Today’s average American home buyer is young, educated and becoming increasingly more diverse.” – Zillow

There’s little doubt that the U.S. borrower base is rapidly changing and becoming more diverse. That diversity includes millennials, self-employed, investors, foreign nationals, and those with imperfect credit.

For example, millennials have been the largest group of U.S. homebuyers for the past five years, according to the National Association of Realtors.1 Millennials held a market share of 36% over the past year, up from 34% in 2017.

And although demand from younger borrowers is high, their credit scores are not. Even as average U.S. credit scores are reaching record highs, younger borrowers may still face homebuying challenges due to lower FICO scores:2

Age

Average Credit Score

18-29

659

30-39

677

40-49

690

50-59

713

Another pronounced shift in the borrower base is the rise of self-employed.The number of Americans working for themselves could increase by more than 7 percent in the next several years, bringing the total population of self-employed professionals to 10.3 million by 2026, according to the US Department of Labor.3

A range of innovative loan programs for today’s borrowers

Responsible non-QM programs can help millions of creditworthy borrowers who don’t fit the traditional credit box – and help lenders replace loan volume due to the decline in refinances. To meet the demands of today’s increasingly diverse borrower base, Verus Mortgage Capital’s extensive programs include:

Loans for borrowers with imperfect credit from $2 million to $5 million, starting at $100,000, through the Credit Ascent program.

Download this white paper to learn about the innovative loan programs in the non-QM space, what’s driving this market’s significant growth and why you should become a part of it. Click to download the Verus white paper >>

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